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  • India BioEconomy Report

    Why in the News?

    The India BioEconomy Report has pegged the value of India’s bioeconomy in 2024 at more than $165 billion, accounting for over 4.2% of the country’s GDP.

    What is Bioeconomy?

    • Bioeconomy refers to the industrial use of biological resources (plants, animals, and microorganisms) and the replication of natural biological processes to produce goods and services.
    • It incorporates sustainable methods to replace traditional, resource-intensive production systems.
    • Applications:
      • Biofuels, bioplastics, medicines, synthetic biology, and agriculture are key sectors where bioeconomy is being applied.
        • Ex. Ethanol produced via microorganisms from crops like sugarcane and corn is a prime example of bioeconomy’s impact on reducing reliance on hydrocarbon-based fuels.

    Key Highlights of the India Bioeconomy Report:

    • Growth in Market Value:
      • India’s bioeconomy has nearly doubled in value from $86 billion in 2020 to $165 billion in 2024.
      • There has been a 90% increase in the number of companies in the bioeconomy sector, from 5,365 in 2021 to 10,075 in 2024, with projections to double again by 2030.
    • Key Sectors:
      • Industrial Sector: Contributes nearly $78 billion, driven by biofuels and bioplastics.
      • Pharmaceuticals: Accounts for 35% of the total bioeconomy value, primarily driven by vaccines.
      • Research and IT: The fastest-growing segment, especially in biotech software development and clinical trials.
    • Regional Contribution:
      • Maharashtra, Karnataka, Telangana, Gujarat, and Andhra Pradesh account for over two-thirds of the bioeconomy value.
      • The Eastern and Northeastern regions contribute less than 6%.
    • Global Comparison:
      • India’s bioeconomy share in GDP (4.2%) is comparable to countries like the US and China.
      • However, countries like Spain and Italy have bioeconomy contributing more than 20% of their GDP.
    • Policy Direction:
      • The BioE3 policy (Biotechnology for Economy, Environment, and Employment), launched in 2024, aims to establish India as a global hub for bio-manufacturing and a major center for biotech R&D.
      • The policy targets growth in areas such as bio-based chemicals, functional foods, precision biotherapeutics, marine and space biotechnology, and climate-resilient agriculture.

    India BioEconomy Report

    [UPSC 2024] Consider the following materials:

    1. Agricultural residues

    2. Corn grain

    3. Wastewater treatment sludge

    4. Wood mill waste

    Which of the above can be used as feedstock for producing Sustainable Aviation Fuel?

    (a) 1 and 2 only (b) 3 and 4 only (c) 1,2,3 and 4  (d) 1,3 and 4 only

     

  • GAIA Mission

    Why in the News?

    The European Space Agency (ESA) officially shut down its Global Astrometric Interferometer for Astrophysics (GAIA) Mission, which had been operational for over a decade.

    About the GAIA Mission

    • It was launched in December 2013 with the primary goal to create the most accurate three-dimensional map of the Milky Way galaxy.
    • It sought to measure the positions, distances, and movements of stars and other celestial bodies.
    • Gaia was designed for astrometry, focusing on precise measurements of celestial object locations and motions.
    • Positioned at Lagrange Point 2 (L2), 1.5 million kilometres behind Earth (as viewed from the Sun), Gaia was able to observe the universe without interference from Earth, the Sun, or the Moon.
    • Gaia was equipped with two telescopes and a camera with nearly 1 billion pixels, the largest camera ever sent to space. Key instruments include:
    1. Astrometer: Measured the location and motion of stars.
    2. Photometer: Measured brightness of celestial objects.
    3. Spectrometer: Analyzed the composition and movement of stars.
    • Discoveries and Achievements:
      • Gaia mapped the Milky Way in 3D, uncovering its shape, structure, and movement. It also detected warping and wobbling in the galaxy.
      • Gaia identified new types of black holes by observing their gravitational effects and tracked over 150,000 asteroids, contributing insights on their orbits and future impacts on Earth.
      • Additionally, it provided new understanding of stellar evolution and the formation of stars, including the Sun.
    • Gaia accumulated over 3 trillion observations, contributing to more than 13,000 scientific papers, revolutionizing knowledge about the Milky Way, the solar system, and galactic dynamics.

    Why is Gaia being Decommissioned?

    • After more than a decade of operations, the Gaia mission reached the end of its operational lifespan, making it unsustainable to continue its activities.
    • After over 10 years in space, Gaia’s technology showed signs of wear, and continuing operations became unfeasible.
    • On March 27, 2025, Gaia was successfully passivated, draining all internal energy sources. This means it can no longer be restarted or resumed for future operations.
    [UPSC 2023] Consider the following pairs: Objects in space Description

    1. Cepheids : Giant clouds of dust and gas in space

    2. Nebulae : Stars which brighten and dim periodically

    3. Pulsars : Neutron stars that are formed when massive stars run out of fuel and collapse

    How many of the above pairs are correctly matched?

    (a)Only one (b) Only two (c)All three (d) None

     

  • [27th March 2025] The Hindu Op-ed: The issue is about the ‘quality’ of India’s publications 

    PYQ Relevance:

    Question: “Although, India is second in the world to file patents, still only a few have been commercialized. Explain the reasons behind this less commercialization.” (UPSC 2024)

    Reason: This question looks at how useful India’s intellectual work is. It focuses on patents instead of research papers but raises a similar point—whether filing many patents leads to real-world applications. Here, commercialization means using intellectual property, which also reflects the quality of India’s research output.

    Mentor’s Comment: At a National Science Day event in February 2025, the Union Science Minister stated that India could surpass the U.S. in scientific publications by 2029. China leads with 8,98,949 papers, followed by the U.S. (4,57,335) and India (2,07,390). He emphasized the need for large-scale investments in education and R&D to match China’s long-term scientific growth.

    Today’s editorial analyzes India’s scientific publications and compares them with developed countries like the USA and China. This analysis is useful for writing answers in GS Paper 3 (UPSC Mains)

    _

    Let’s learn!

    Why in the News?

    Science officials should focus on improving the quality of India’s research publications instead of just being satisfied with the increasing number of papers.

    What are the quality issues in Indian publications? 

    • High Presence in Predatory Journals: Many Indian researchers publish in low-quality or predatory journals that lack proper peer review. Example: A 2018 study found that 35% of papers in predatory journals came from India, reducing credibility.
    • Low Citation Impact: Indian research papers often have fewer citations, indicating limited global influence and impact. Example: While China contributes heavily to high-impact journals like Nature and Science, India lags in such publications.
    • Plagiarism & Research Misconduct: Cases of plagiarism, data fabrication, and duplicate publications undermine research integrity. Example: In 2019, over 1,000 Indian research papers were retracted due to ethical violations.
    • Weak Industry-Academia Linkages: Research often lacks practical applications, with minimal collaboration between academia and industry. Example: Unlike China, where AI and 5G research directly benefit Huawei and Tencent, India’s industry-research link is weak.
    • Limited Breakthrough Research in Frontier Technologies: India lags in deep-tech areas like AI, quantum computing, and biotechnology due to inadequate funding and infrastructure. Example: While Google (USA) and Alibaba (China) lead in quantum computing, India mostly imports technology.

    What are the key factors contributing to China’s dominance in scientific research output compared to India?

    Key Factor China’s Strength Example
    Heavy Investment in R&D 2.4% of GDP spent on R&D, significantly higher than India’s 0.67% Medium-to-Long-Term Plan (2006-2020) led to advancements in AI, biotechnology, and materials science.
    Strong University and Institutional Support Massive government funding and autonomy for research institutions Tsinghua University, Peking University, and CAS contribute thousands of high-impact research papers annually.
    Focus on High-Quality Publications Researchers publish extensively in top journals like Nature, Science, and JACS CAS alone contributed 444 papers in JACS (2017–2024), while all CSIR labs in India contributed only 29.
    Strategic Talent Development and Global Collaboration Attracts global talent and fosters domestic researchers through international partnerships Thousand Talents Plan recruited top global scientists, boosting innovation.
    Industry-Academia Linkages and Patent Filing Strong collaboration between research institutions and industries, leading to high patent filings China dominates AI, quantum computing, and 5G, with companies like Huawei, Baidu, and Tencent integrating research into industry applications.

    How does India’s research spending compare to other advanced nations, and what are the effects?

    • Low R&D Expenditure as % of GDP: India spends ~0.67% of GDP on R&D, significantly lower than USA (3.4%), China (2.4%), Germany (3.1%), South Korea (4.8%), and Israel (5.6%). This leads to slower technological advancements and reduced global competitiveness. Example: India lags behind in semiconductor manufacturing, relying on imports instead of domestic production like China, Taiwan, and the US.
    • Dominance of Government Funding: Government funds ~56% of R&D in India, whereas in advanced nations, private sector contributes 70-80%. The limited commercialization of research and weaker industry-academia collaboration hinder innovation.Example: ISRO’s space research is globally recognized, but private sector participation in space technology is still nascent compared to SpaceX (USA) or CASC (China).
    • Lower Patent Filings & Innovation Output: India’s patent filings are much lower than leading economies. In 2023, India filed ~58,502 patents, whereas China filed 1.58 million. The slow innovation cycle increases reliance on foreign technologies. Example: China dominates 5G patents (~40%), while India relies on foreign telecom firms like Nokia and Ericsson for 5G deployment.
    • Brain Drain and Researcher Exodus: Indian researchers often migrate abroad due to limited funding, better salaries, and superior research infrastructure. The talent loss weakens India’s domestic research ecosystem. Example: Many IIT and IISc graduates move to the US, UK, or Europe for research positions in top institutions like MIT, Stanford, or Oxford.
    • Limited Breakthroughs in Deep-Tech & Frontier Research: India has limited presence in deep-tech areas like AI, quantum computing, and biotechnology, where the US, China, and EU invest heavily. Dependence on foreign companies for cutting-edge technology continues to grow. Example: India imports most quantum computing hardware, while Google (US) and Alibaba (China) lead the sector.

    What are the major ethical concerns in Indian research, and where does India stand in research integrity?

    • Plagiarism & Research Misconduct: Cases of plagiarism, data fabrication, and duplicate publications are prevalent in Indian academia. Weak enforcement of ethical guidelines leads to compromised research integrity. Example: In 2019, a major controversy arose when over 1,000 Indian research papers were retracted due to ethical violations.
    • Predatory Journals & Substandard Publications: Many Indian researchers publish in low-quality or predatory journals due to pressure for academic promotions. This dilutes the credibility of Indian research on the global stage. Example: A 2018 study found that over 35% of papers in predatory journals were from India, raising concerns about academic standards.
    • Lack of Strong Ethical Oversight & Whistleblower Protection: Institutional Ethics Committees (IECs) often lack independence and fail to take strict action against misconduct. Whistleblowers face retaliation, discouraging the reporting of unethical practices. Example: In cases like the AIIMS ethics review controversies, concerns were raised over conflicts of interest and leniency towards fraudulent research.

    What are the steps taken by the Indian government? 

    • Increased R&D Funding & Policy Initiatives: The government has launched schemes like National Research Foundation (NRF) with a ₹50,000 crore corpus to boost R&D across sectors. Atal Innovation Mission (AIM) promotes startups, research incubation, and industry-academia collaboration. Example: IMPRINT (Impacting Research Innovation and Technology) supports research in key areas like healthcare, AI, and advanced materials.
    • Strengthening Research Ethics & Quality Publications: UGC-CARE List was introduced to ensure publication in quality journals and curb predatory publishing. Draft National Policy on Research and Development (2023) aims to streamline ethical research guidelines. Example: AIIMS and IITs have implemented stricter plagiarism checks and ethical review mechanisms.
    • Boosting Deep-Tech & Patent Ecosystem: The National Quantum Mission (NQM) aims to position India as a global leader in quantum computing and communication. Simplified patent filing processes and incentives under Start-up India & Make in India encourage innovation. Example: India’s patent filing growth (58,502 in 2023), with initiatives like Mission on Cyber-Physical Systems (CPS) to develop AI, robotics, and IoT.

    Way forward: 

    • Increase R&D Investment & Industry Collaboration: Raise India’s R&D spending to at least 2% of GDP, with a greater role for private sector funding. Strengthen industry-academia linkages to boost innovation and commercialization, similar to China’s model.
    • Enhance Research Integrity & Quality Standards: Implement stricter regulations to curb plagiarism, predatory publishing, and unethical practices. Strengthen peer review mechanisms, independent ethics committees, and whistleblower protections to uphold research credibility.
  • Govt discontinues Gold Monetization Scheme

    Why in the News?

    The Centre has decided to discontinue the Gold Monetization Scheme (GMS) starting from March 26, 2025, considering evolving market conditions.

    The short-term deposits (1-3 years) will continue at the discretion of individual banks based on commercial viability, highlighting a shift towards flexible, shorter-term options.

    About Gold Monetization Scheme (GMS) and its Features

    • The GMS was launched in November 2015 as an enhanced version of the Gold Deposit Scheme (GDS) and Gold Metal Loan (GML) Scheme.
    • The main goal was to mobilize idle gold from households and institutions into the formal economy, thereby reducing the country’s reliance on gold imports and improving the current account deficit (CAD).
    • Objectives: Aimed at mobilizing gold, reducing gold imports, and utilizing gold to generate interest as a financial asset, thereby strengthening the economy.
    • The GMS included three deposit options:
      • Short-Term Gold Deposit (STGD): 1-3 years
      • Medium-Term Gold Deposit (MTGD): 5-7 years
      • Long-Term Gold Deposit (LTGD): 12-15 years
    • Interest and Redemption:
      • Short-Term Deposits: Interest rates determined by individual banks; redemption could be in cash or gold.
      • Medium- and Long-Term Deposits: Fixed interest rates at 2.25% (medium-term) and 2.5% (long-term), with cash redemption only.
    • Eligibility Criteria:
      • Open to individuals, institutions, and government entities.
      • Gold tendering accepted only at designated Collection and Purity Testing Centres (CPTC) or through GMS Mobilisation Agents.
      • Deposits were accepted only if the value exceeded ₹1 lakh.

    Reasons for Discontinuation  

    • The Finance Ministry discontinued the Medium-Term and Long-Term Deposits due to changes in the gold market.
    • Gold prices surged by 41.5% from ₹63,920 per 10 grams in January 2024 to ₹90,450 per 10 grams by March 2025.
    • This rise in gold value reduced the attractiveness of schemes like GMS for both depositors and the government.
    • With the closure of the Sovereign Gold Bond Scheme, the government aims to shift towards more market-oriented solutions for gold-related financial products.
    [UPSC 2016] What is/are the purpose/purposes of the Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

    1. To bring the idle gold lying with Indian households into the economy.

    2. To promote FDI in the gold and jewellery sector

    3. To reduce India’s dependence on gold imports

    Select the correct answer using the code given below:

    (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

     

  • DRDO tests Vertically Launched Short-Range Surface-to-Air Missile (VLSRSAM)

    Why in the News?

    The DRDO has successfully tested the Vertically- Launched Short-Range Surface-to-Air Missile (VLSRSAM) for the Indian Navy.

    About VLSRSAM

    • The VLSRSAM is a ship-borne surface-to-air missile designed to counter various aerial threats, particularly at short ranges.
    • The missile is intended for neutralizing airborne threats at close ranges, including aircraft, helicopters, drones, and other incoming missiles, which are critical for naval defence operations.
    • The VLSRSAM weighs around 170 kg and is powered by a solid propellant.
    • The missile can reach a maximum speed of Mach 4.5.
    • The missile can reach altitudes of 16 km and has a range sufficient to engage high-speed targets.
    • Guidance System:
      • Mid-course phase: The missile uses a fibre-optic gyroscope-based inertial guidance system, ensuring stable flight towards the target.
      • Terminal phase: It switches to active radar homing for precise target acquisition and guidance, ensuring that it can engage targets with high accuracy even at low altitudes.

    Strategic Significance

    • With advanced guidance systems, the VLSRSAM demonstrates agility and precision in targeting, ensuring it is highly effective even against fast-moving, low-flying aerial threats.
    • The missile has been tested for reliability and accuracy, successfully engaging targets at close range and low altitudes.
    • It is seen as a force multiplier for the Indian Navy, significantly enhancing its air defence capabilities, particularly in protecting high-value assets in the maritime domain.
    [UPSC 2018] What is “Terminal High Altitude Area Defense (THAAD)”, sometimes seen in the news ?

    (a) An Israeli radar system

    (b) India’s indigenous anti-missile programme

    (c) An American anti-missile system

    (d) A defence collaboration between Japan and South Korea

     

  • Growth in most Southern States is concentrated in a few districts

    Why in the News?

    Economic growth in southern states lagged behind India’s overall growth in 2023-24. Despite a large working population, unemployment rates in these states remain a major concern, as seen in their Budget and Economic Surveys.

    Growth in most southern States is concentrated in a few districts

    What are the key reasons behind the economic growth of southern states lagging behind India’s overall growth in 2023-24?

    • Lower Growth Rates Compared to National Average – While India’s economy grew at 9.2%, southern states like Tamil Nadu (8.2%) and Telangana (7.4%) recorded slower growth, with Karnataka, Kerala, and Andhra Pradesh growing at over 6%.
    • Regional Income Disparities – Economic advantages are concentrated in select districts, limiting broad-based growth. For example, only 8 of 38 districts in Tamil Nadu and 3 of 33 in Telangana had higher per capita income than their state averages.
    • Unemployment and Labour Force Challenges – Despite a significant working population, labour force participation rates (LFPR) in Tamil Nadu (58.8%), Karnataka (56.8%), and Kerala (56.2%) were below the national average of 60.1%, affecting economic output.
    • Shift Towards Self-Employment – There is a decline in casual labour and an increase in self-employment, often in household enterprises, leading to a lack of stable wage employment. Example: In Telangana, self-employment rose by 8% to 55.9%, while casual labour fell by 5.7% to 18.7%.
    • Slower Industrial and Manufacturing Growth – Despite industrial pushes, manufacturing contributes less than 20% of southern states’ economies, limiting their overall economic expansion.

    Which southern state has the most equitable distribution of per capita income across its districts? 

    • More Even Income Spread: Kerala has 7 out of 14 districts with a per capita income above the state average, making it the most balanced among southern states. In contrast, Tamil Nadu (8 out of 38), Telangana (3 out of 33), and Karnataka (4 out of 31) show higher income concentration in a few districts.
    • Unlike Telangana, where Rangareddy district’s per capita income is more than three times the state average, Kerala’s income distribution is less skewed, ensuring better regional development and social welfare across the state.

    Why is this significant?

    • Reduced Regional Disparities: A more balanced income distribution ensures that economic benefits are spread across districts, preventing excessive wealth concentration in urban centers. Example: Unlike Telangana, where Rangareddy dominates income levels, Kerala’s development is more uniform, reducing economic inequalities.
    • Better Social and Human Development Indicators:  Equitable income distribution translates into better education, healthcare, and infrastructure across all districts, improving overall quality of life. Example: Kerala consistently ranks high in Human Development Index (HDI) due to its statewide access to education and healthcare.
    • Sustainable and Inclusive Growth: A well-distributed economy supports long-term stability by ensuring that no district lags significantly behind, leading to lower migration pressures and balanced urbanization. Example: Unlike Tamil Nadu, where Chengalpattu’s income is double the state average, Kerala’s economy avoids overburdening specific urban hubs, leading to sustainable development.

    Why is unemployment still a pressing concern in southern states?

    • Higher Labour Force Participation but Fewer Job Opportunities – While more people are seeking work, the availability of stable, well-paying jobs remains limited. Example: In 2023-24, Tamil Nadu (58.8%), Karnataka (56.8%), and Kerala (56.2%) had labour force participation rates lower than the national average (60.1%), indicating fewer employment opportunities relative to job seekers.
    • Shift from Casual Labour to Self-Employment Without Formal Jobs Growth – More people are moving away from casual labour towards self-employment, but the growth of regular salaried jobs remains stagnant. Example: In Telangana, the self-employed workforce increased by 8% (to 55.9%), while casual labour declined by 5.7%, reflecting a lack of structured employment.
    • Dominance of the Services Sector with Limited Manufacturing Growth – The services sector contributes over 50% of economic output, but it often lacks the capacity to absorb large numbers of workers, especially in lower-income groups. Example: In Tamil Nadu, despite an industrial push, manufacturing has not significantly increased its share in the state economy, limiting job creation in this sector.

    What role does the services sector play in the economies of southern states?

    • Primary Driver of Economic Growth – The services sector contributes over 50% of economic output in most southern states, making it the main engine of economic expansion. Example: In Karnataka and Telangana, the IT and software services industry significantly boosts state GDP, with Bengaluru and Hyderabad being major global tech hubs.
    • Uneven Job Creation Across Skill Levels – While the services sector creates high-value jobs in IT, finance, and healthcare, it does not generate enough employment for lower-skilled workers, contributing to persisting unemployment. Example: Kerala, despite its strong service-driven economy (tourism, healthcare, remittances), struggles with high unemployment rates due to a lack of blue-collar service jobs.

    Way forward: 

    • Diversify Economic Growth Beyond Services – Strengthen manufacturing and industrial sectors to create stable, large-scale employment opportunities, especially for lower-skilled workers. Example: Expanding MSMEs and industrial corridors in Tamil Nadu and Karnataka can boost job creation.
    • Enhance Skill Development and Labour Market Reforms – Improve vocational training and upskilling programs to align with industry demands, ensuring better job-market absorption. Example: Kerala can integrate its educated workforce into high-value sectors like healthcare and renewable energy.

    Mains PYQ:

    Question: What is regional disparity? How does it differ from diversity? How serious is the issue of regional disparity in India? (UPSC 2024)

    Reason: This question’s demand is directly linked with the regional inequality, which explains why economic growth is concentrated in certain parts of a state. Understanding this helps us see why some districts develop faster than others.

  • RBI revises Priority Sector Lending (PSL) guidelines

    Why in the News?

    The RBI has issued revised guidelines for Priority Sector Lending (PSL), effective from April 1, 2025, to improve the targeting of bank credit to key sectors of the economy.

    About Priority Sector Lending (PSL)

    What is it?
    • PSL refers to the portion of bank lending that must be directed to specific sectors identified as priorities for national development.
    • The RBI mandates that banks must allocate a specified portion of their credit to these sectors to ensure inclusive growth.

    Origin of PSL:

    • PSL was introduced in India in the late 1960s.
    • The term “priority sector” was first used in 1967 by Morarji Desai, then Deputy Prime Minister, and it led to legislative measures for social control over banks.
    • In 1972, the RBI formally defined priority sectors, focusing initially on agriculture and small-scale industries.
    Which Banks are Covered Under PSL? 1. Domestic Scheduled Commercial Banks, Cooperative Banks, and Foreign Banks: 40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBSE), whichever is higher.

    2. Small Finance Banks and Regional Rural Banks (RRBs): 75% of ANBC or CEOBSE, whichever is higher.

    3. Payment Banks: NOT subject to PSL targets.

    Priority Sector Categories • Agriculture • Micro, Small, and Medium Enterprises (MSMEs) • Export Credit • Education • Housing • Social Infrastructure • Renewable Energy

    • Others, including Scheduled Castes, Scheduled Tribes, and Persons with Disabilities.

    • Micro Finance Institutions (MFIs) offering loans to individuals and Self-Help Groups (SHGs) are also eligible for PSL classification.

    Consequences of Failing to Meet PSL Norms 1. Investment in Rural Infrastructure Development Fund (RIDF): Banks falling short of PSL targets may be required to invest in the Rural Infrastructure Development Fund (RIDF), managed by NABARD, or other designated funds like those managed by SIDBI and NHB.

    2. Purchase of PSL Certificates: Banks can purchase Priority Sector Lending Certificates (PSLCs) to meet their PSL targets.

    Priority Sector Lending Certificates (PSLCs)
    • Tradable certificates issued against priority sector loans by banks.
    • Banks can purchase PSLCs to meet PSL targets if they fall short, while incentivizing surplus banks to lend more to these sectors.

    Revised PSL Guidelines for 2025:

    • Revised PSL guidelines for 2025 will enhance the targeting of bank credit to priority sectors.
    • Loan limits for housing have been increased, with differentiated limits based on population size: ₹50 lakh (population ≥ 50 lakh), ₹45 lakh (population 10-50 lakh), and ₹35 lakh (population < 10 lakh).
    • Renewable energy loans: Up to ₹35 crore for power generators and public utilities, and ₹10 lakh for individual households.
    • Urban Cooperative Banks (UCBs) have a revised PSL target of 60% of Adjusted Net Bank Credit (ANBC).
    • Weaker Section borrowers expanded and the cap on loans to individual women beneficiaries has been removed.
    [UPSC 2012] The basic aim of Lead Bank Scheme is that the –

    (a) big banks should try to open offices in each district

    (b) there should be stiff competition among the various nationalized banks

    (c) individual banks should adopt particular districts for intensive development

    (d) all the banks should make intensive efforts to mobilize deposits

     

  • NPCI Launches BHIM 3.0 with Enhanced Features

    Why in the News?

    NPCI BHIM Services Ltd. (NBSL), a subsidiary of the National Payments Corporation of India (NPCI), launched BHIM 3.0 with new features aimed at enhancing the user experience and providing new offerings for businesses and banks.

    About BHIM (Bharat Interface for Money):

    • BHIM is a mobile payment app developed by NPCI, based on the Unified Payments Interface (UPI), aimed at promoting cashless transactions and digital payments directly through banks.
    • Launched on December 30, 2016, BHIM facilitates instant money transfers between over 170 member banks using IMPS infrastructure.
    • Unlike mobile wallets, BHIM transfers money directly between bank accounts, ensuring quick transactions at any time, including holidays.
    • BHIM now supports Aadhaar-based authentication for easier digital payments.
    • BHIM is available in more than 20 Indian languages and is designed to work effectively in areas with low or unstable internet connectivity.
    • BHIM employs a robust three-factor authentication (3FA) process to ensure the security of transactions:
      1. Device ID and Mobile Number: The app binds with the user’s device ID and mobile number to verify the device.
      2. Bank Account Link: Users must sync their bank account (UPI-enabled or non-UPI-enabled) to the app for transactions.
      3. UPI PIN: A unique UPI PIN is required for completing transactions, which adds an extra layer of security.
    • NPCI does not charge any fee for transactions between ₹1 and ₹100,000.
      • Banks may charge fees for UPI or IMPS transfers, but there is no official information on BHIM-specific charges.

    Key Features of BHIM 3.0

    • Split Expenses: Users can now divide bills for shared expenses (e.g., rent, dining, group purchases) and settle payments instantly.
    • Family Mode: Users can onboard family members, track shared expenses, and assign specific payments for better financial management.
    • Spends Analytics: A new dashboard provides a detailed breakdown of monthly expenses, automatically categorizing them for easier budgeting.
    • Action Needed Alerts: BHIM 3.0 includes reminders for pending bills, activation of UPI Lite, and low Lite balance alerts to help users stay updated.
    • BHIM Vega: This feature allows merchants to accept in-app payments directly within the BHIM app, streamlining transactions without needing third-party apps.
    [UPSC 2018] With reference to digital payments, consider the following statements:

    1.BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.

    2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

    Which of the statements given above is/are correct?

    (a) 1 only  (b) 2 only (c) Both 1 and 2  (d) Neither 1 nor 2

     

  • Govt proposes to abolish Equalization Levy

    Why in the News?

    The Centre is considering the withdrawal of the 6% Equalization Levy on online advertisement services provided by offshore digital economy firms to Indian businesses.

    What is Equalization Levy?

    • The Equalization Levy was introduced in 2016 under Section 165A of the Finance Act, primarily to tax digital transactions conducted by foreign e-commerce companies with Indian businesses.
    • It was designed to ensure that foreign companies, particularly in the digital economy, pay taxes for benefiting from Indian markets without a physical presence in the country.
    • It was primarily aimed at business-to-business (B2B) transactions, which is why it is often referred to as the “Google Tax”.
    • The levy mechanism involves withholding the tax at the time of payment made by the Indian service recipient to a non-resident service provider.
    • The annual payment threshold for the levy is ₹1,00,000 for a single service provider in a financial year.
    • Services covered under the levy:
      • Online advertisement services (effective from June 1, 2016).
      • Provision of digital advertising space or sale of goods to Indian residents (effective from April 1, 2020).
    • Tax Rates:
      • 6% of the gross consideration is levied on online advertisement services.
      • 2% of the gross consideration is levied on e-commerce transactions like the sale of goods or services.
    • Exclusions:
      • The levy does not apply if the non-resident has a permanent office in India related to the service.
      • The payment for the service is below ₹1 lakh.
    • Tax Withholding: The tax is withheld by the Indian service recipient at the time of payment.

    Why it is being Abolished?

    • This move is part of India’s attempt to reduce tensions with the US, which raised concerns over such taxes.
      • Similarly, the UK is considering the abolition of its digital services tax by April 2025.
    • In August 2024, the Indian government removed the 2% levy applied to offshore tech firms (e.g., cloud services, e-commerce).
      • The 6% levy on online advertisements remained, impacting companies like Google and Meta.
    • The Finance Bill 2025 proposes a sunset clause to phase out the 6% levy on online advertisements by April 1, 2025.
    [UPSC 2012] What is/are the recent policy initiative(s)of Government of India to promote the growth of manufacturing sector?  Setting up of:

    1. National Investment and Manufacturing Zones

    2. Providing the benefit of ‘single window clearance’

    3. Establishing the Technology Acquisition and Development Fund

    Select the correct answer using the codes given below:

    (a) 1 only   (b) 2 and 3 only  (c) 1 and 3 only   (d) 1, 2 and 3

     

  • [25th March 2025] The Hindu Op-ed: As ice frozen for millennia thaws, Kashmir wakes up to new risks 

    PYQ Relevance:

    Question: How does the melting of the Arctic ice and glaciers of the Antarctic differently affect the weather patterns and human activities on the Earth? Explain. (UPSC 2021)

    Reason:  It addresses the broader impact of melting ice on weather patterns and human activities, a theme relevant to the permafrost thaw in the Himalayas.

     

    Mentor’s Comment: UPSC mains usually focus on the melting of the Arctic ice and glaciers (2021) and the melting of Himalayan glaciers in 2020.

    Permafrost, frozen for millennia, is now thawing due to global warming, releasing stored carbon, including methane, a potent greenhouse gas, leading to severe climatic and ecological consequences. It’s  melting poses a growing environmental threat in the Kashmir Himalayas, endangering 193 km of roads, 2,415 households, 903 alpine lakes, and eight hydropower projects. 

    Today’s editorial discusses melting permafrost and its impacts, which is relevant for GS Paper 3 in the UPSC Mains exam.

    _

    Let’s learn!

    Why in the News?

    A study by researchers from the University of Kashmir and IIT-Bombay, published in Remote Sensing Applications: Society and Environment, found that permafrost covers 64.8% of J&K and Ladakh in different forms.

    What is Permafrost?

    Permafrost is ground—comprising soil, rock, or sediment—that remains continuously frozen for at least two years. It is found in high-altitude and polar regions, stores carbon, and supports unique ecosystems. However, rising global temperatures are causing it to thaw, leading to infrastructure damage, greenhouse gas emissions, and environmental disruptions.

    What are the major environmental and infrastructural challenges associated with permafrost melting in the Kashmir Himalayas?

    • Increased Risk of Glacial Lake Outburst Floods (GLOFs): Thawing permafrost destabilizes moraines, increasing the likelihood of sudden lake outbursts. Example: The South Lhonak Lake outburst in Sikkim (October 2023) and the Chamoli disaster in Uttarakhand (February 2021).
    • Damage to Roads and Infrastructure: Melting permafrost weakens the ground, causing landslides and road subsidence, disrupting connectivity. Example: Strategic roads in Ladakh, crucial for military operations, are at risk due to thaw-induced ground instability.
    • Threat to Hydropower Projects: Permafrost degradation affects water availability and increases sediment flow, damaging dams and power plants. Example: 8 hydropower projects in J&K and Ladakh are vulnerable to thaw-induced landslides and reduced water flow.
    • Loss of Permafrost-Dependent Ecosystems: Thawing disrupts alpine ecosystems, affecting vegetation, wildlife, and water cycles. Example: Decline of cold-adapted species and changing river flow patterns impacting local biodiversity.
    • Release of Greenhouse Gases: Thawing permafrost releases methane, a potent greenhouse gas, accelerating climate change. Example: Increased methane emissions in permafrost-rich Ladakh contribute to global warming.

    Where is permafrost most extensively found in Jammu & Kashmir and Ladakh?

    • Ladakh Plateau & Karakoram Range: Cold-arid climate with high-altitude plateaus and glaciated mountains supports extensive permafrost. Example: Nubra Valley and Changthang Plateau have widespread permafrost due to sub-zero temperatures year-round.
    • Drass & Zanskar Region: Known as the “Gateway to Ladakh,” Drass is one of the coldest inhabited places in India. Example: Drass (often recording temperatures below -30°C) and Zanskar Valley exhibit permafrost in high-altitude zones.
    • Upper Indus River Basin: The cold, high-altitude valleys along the Indus River, particularly in the Leh region, have significant permafrost. Example: Permafrost is found in areas along the Indus near Leh, impacting groundwater storage and hydrology.
    • Siachen Glacier & Surrounding Areas: One of the highest and coldest battlefields in the world, sustaining year-round permafrost. Example: Permafrost is critical in maintaining the stability of the Siachen Glacier and surrounding military outposts.
    • Higher Reaches of Kargil: Some parts of Kargil, particularly in remote high-altitude areas, experience permafrost conditions. Example: Permafrost is found in higher elevations of Kargil, but lower valleys may lack continuous permafrost.

    Which regions lack permafrost coverage?

    • Kashmir Valley (Srinagar, Anantnag, Baramulla): Relatively lower altitude with temperate climate prevents permafrost formation. Example: Srinagar, despite cold winters, does not have permafrost due to warmer summer temperatures.
    • Jammu Region (Jammu, Udhampur, Kathua): Lower altitude and subtropical climate make permafrost formation impossible. Example: Jammu city has hot summers and mild winters, ruling out any permafrost presence.
    • Pir Panjal Range: Lower altitude than the Greater Himalayas, experiencing seasonal snow rather than permanent permafrost. Example: Gulmarg and Poonch receive heavy snowfall but do not sustain permafrost.
    • Chenab and Jhelum River Valleys: Warmer valley temperatures prevent permafrost formation, though higher peaks may have seasonal ice. Example: Areas like Pahalgam and Kupwara experience snow cover but lack permafrost due to fluctuating temperatures.
    • Lower Altitudes of Kargil and Leh: While upper reaches have permafrost, lower valleys experience enough summer warmth to prevent it. Example: Kargil town itself does not have permafrost, but surrounding mountains do.

    What are the causes of the thawing of permafrost?

    • Rising Global Temperatures (Climate Change): Increased greenhouse gas emissions lead to higher atmospheric temperatures, accelerating permafrost thaw. Example: In Ladakh, rising temperatures have led to permafrost degradation in the Changthang Plateau, impacting traditional grazing lands.
    • Infrastructure Development & Human Activities: Roads, buildings, and military installations generate heat, disrupting the thermal balance of permafrost. Example: The construction of roads like the Zojila Tunnel and military bases in Siachen has contributed to localized permafrost thaw.
    • Reduced Snow Cover & Glacial Retreat: Snow acts as an insulating layer, preventing permafrost from direct exposure to warming air. Reduced snowfall accelerates melting. Example: The retreat of glaciers in Zanskar Valley has exposed underlying permafrost to warmer temperatures, leading to faster thawing.
    • Increased Rainfall & Changing Precipitation Patterns: More rainfall instead of snowfall leads to surface warming, infiltrating the soil and speeding up permafrost thaw. Example: Parts of Drass have seen changing precipitation patterns, where more rain in summer accelerates permafrost degradation.
    • Forest Fires & Loss of Vegetation Cover: Vegetation helps insulate the ground; its loss due to deforestation or fires exposes permafrost to direct heat. Example: In Ladakh, overgrazing by livestock in Changthang Wildlife Sanctuary has led to soil erosion, increasing permafrost vulnerability.

    What are the steps taken by the government? 

    • Monitoring and Research Initiatives: The Indian government, in collaboration with research institutions like the Defence Geoinformatics Research Establishment (DGRE) and Wadia Institute of Himalayan Geology (WIHG), is conducting studies on permafrost dynamics in Ladakh and Jammu & Kashmir. Example: DGRE has set up monitoring stations in Drass, Kargil, and Siachen to study permafrost stability and assess risks to infrastructure.
    • Climate Resilient Infrastructure Development: The Border Roads Organisation (BRO) is adopting new engineering techniques, such as thermosyphons and insulated road layers, to prevent permafrost degradation in road and tunnel construction. Example: In the construction of the Zojila Tunnel, special insulation techniques are being used to minimize heat impact on permafrost.
    • Afforestation and Sustainable Land Management: Programs under CAMPA (Compensatory Afforestation Management and Planning Authority) and National Mission on Himalayan Studies (NMHS) aim to restore vegetation cover, which helps maintain permafrost stability. Example: Reforestation efforts in Changthang Wildlife Sanctuary and Ladakh’s high-altitude areas help in reducing soil erosion and insulating the permafrost layer.

    Way forward: 

    • Integrating Climate-Resilient Infrastructure Planning: Adopt permafrost-friendly construction techniques, such as thermosyphons and passive cooling methods, in strategic roads, hydropower projects, and military installations to minimize thawing-related damage.
    • Strengthening Monitoring and Adaptive Strategies: Expand permafrost monitoring networks, enhance research on thaw impacts, and implement community-based adaptation measures, such as sustainable grazing and afforestation, to mitigate long-term environmental risks.